SPY Charts 6/6 Bull Fever

When bear markets come they really spark all kinds of extremes,  Just last Friday we saw the Dow down  200+ points, and  today the market including the SPY is up 2.50% swings, big swing.  That is a lot of volatility. I am a little skeptical mainly because Europe is still cause some problems with the shape that they are in.  The Fed came out today and had some "moderately" good things to say about the economy and that sectors in the economy were growing, albeit slowly.  But for me it still comes down to jobs and if our economy is to grow we need jobs.

So how do jobs effect the next couple of days for traders. It could put a halt to some of the momentum that we have seen the last two days.

The technical set up is a little tricky because we are still in a pretty steep decline and as we bounce on these types of days it can exhaust buyers.  As you can see on the daily chart its pretty evident that the SPY is in a critical area it's trying to overcome the trend line when the Higher Low  developed at $134.  A break above the trend line won't get me into the bullish bandwagon until we can break through at $134




On the time frame below you can see some of the complexities of the move and as tomorrow develops to see how that price action moves above or below bothe the trend line and the neckline at $132.50.  If it breaks above I most likely go neutral and wait till the price moves up to $134


 The last couple of weeks Thursday's jobs reports have not been rosy and if we have that tomorrow I don't see why we can't head lower.  Most of the news today was not overly bullish in nature there was no hint that the Fed will yet consider QE3 and the ECB kept their interest rates.  There will be a bond sale in Spain tomorrow and as long as that is supported,  the SPY could have a mixed day. 

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives